Oil spikes on U.S.-Iran escalation near Hormuz — ride the energy rally
The U.S. just carried out fresh airstrikes on Iranian military targets near the Strait of Hormuz, one of the world's most important oil shipping chokepoints. Oil prices jumped nearly 3% overnight, approaching $97 a barrel.
Idea
The Strait of Hormuz handles roughly 20% of the world's daily oil shipments. Each new escalation between the U.S. and Iran increases the odds that commercial shipping gets disrupted, which would squeeze global supply. Oil has already moved toward $97, and energy stocks tend to follow crude prices higher with a short lag — especially when volume surges the way it did this morning. If the conflict continues to escalate, oil majors like ExxonMobil and Chevron, as well as broad energy ETFs, could keep running. The risk is that a sudden ceasefire reverses the move quickly, so a tight trailing stop is important.